Mumbai, Dec 10: The rupee depreciated 7 paise to close at 89.94 against the US dollar on Wednesday, tracking a negative trend in domestic equities and sustained foreign fund outflows.
Forex traders said investors are in a wait-and-watch mode, awaiting clarity from the US Federal Reserve before taking decisive positions.
Investors are also awaiting cues from the US-India trade talks, which could boost the rupee in the coming days.
At the interbank foreign exchange market, the rupee opened at 90.00, then fell to an intra-day low of 90.10 against the US dollar and finally settled for the day at 89.94, down 7 paise from its previous close.
On Tuesday, the rupee settled up 18 paise at 89.87 against the US dollar.
Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.09 per cent lower at 99.12.
Brent crude, the global oil benchmark, was trading 0.26 per cent higher at USD 62.10 per barrel in futures trade.
On the domestic equity market front, the Sensex dropped 275.01 points to settle at 84,391.27, while the Nifty fell 81.65 points to 25,758. Foreign Institutional Investors sold equities worth Rs 1,651.06 crore on Wednesday. (PTI)
